Herbalife International
September 13, 2021
Herbalife Nutrition cut its third-quarter and full-year 2021 outlook before a September 14 investor day. The company said distributor activity was lower than expected, which reduced the sales forecast. Third-quarter net sales were now expected to decline 6.5 percent to 3.5 percent from 2020. Full-year net sales growth was cut to 4.5 percent to 8.5 percent, a 400 basis point drop in the midpoint from the prior range.
Full-year adjusted diluted earnings were revised to 4.55 to 4.95 dollars a share, with the midpoint down 0.15 dollars. Full-year adjusted EBITDA was reduced to 860 million to 910 million dollars from 875 million to 935 million dollars. Third-quarter adjusted earnings were guided to 1.00 to 1.20 dollars a share, and third-quarter adjusted EBITDA to 200 million to 220 million dollars.
Chief executive John Agwunobi said the company still expected a second straight record sales year, while pandemic conditions made channel behavior harder to predict. Sales leaders actively selling in July and August were up 10 percent from 2020. Versus 2019, third-quarter net sales were still expected to grow about 14 percent to 18 percent. The company also said it expected to repurchase more than 200 million dollars of shares across the third and fourth quarters.